TUESDAY, JANUARY 19, 2021
Life can often be busy and chaotic even at the best of times and it is easy to forget the stray payment here and there. Unfortunately, this could land you in trouble when it comes to your car insurance. 
Missing a single car insurance premium will generally result in a warning and a late fee. As long as you pay the premium and fee as soon as you can, you likely won’t see much repercussion for the incident. However, more complications can arise if you miss more than one premium.
Can an Insurer Cancel Your Auto Insurance for Not Paying?
Perhaps one of the most common reasons an insurer may cancel your policy is due to nonpayment. If you miss several payments without heeding the warnings, your policy can be cancelled, meaning you will be left without car insurance.
It can also make it difficult to find affordable car insurance afterward. Insurance providers often share information and if your policy is canceled, other insurers may be informed. This doesn’t mean that you won’t be able to find insurance, however. Many insurers will still provide you car insurance even if your previous policy was cancelled due to nonpayment.
Avoiding Nonpayment
In order to avoid your policy being canceled due to missing premiums, take important steps such as:
Budget Correctly
Before you even purchase a car insurance policy, be sure to compare quotes among multiple insurers and budget properly. This can ensure that you have enough resources to afford the policy that you need. Car insurance can be expensive, but there are different ways to save money, such as asking your insurance agent about discounts you may qualify for, such as a Mature Driver discount or Low Mileage discount.
Set Up Automatic Payments
These days, most insurance providers offer automatic payments in which you can link your card to automatically draft your insurance premium each month. Since the process it automatic, you don’t have to worry about remembering to log in and manually paying your bill. However, you should still remember to have enough funds in the correct bank account for when your premium is drafted.
Choose Annual Premiums
Many insurance providers also offer discounts if you choose to pay your car insurance premiums annually rather than monthly. This can help, as it is only one payment to remember out of the year.
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